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Corporate failure models

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Corporate failure models

  • This topic has 7 replies, 3 voices, and was last updated 10 years ago by Ken Garrett.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • June 3, 2014 at 11:33 am #173202
    atab
    Member
    • Topics: 82
    • Replies: 184
    • ☆☆☆

    Hi,

    In the exam, are you given the formula and details with respect to Altman’s Z score? Also, are you given variables for defects, mistakes and symptoms for Argenti’s A-score please?

    Thanks

    June 3, 2014 at 11:46 am #173206
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10650
    • ☆☆☆☆☆

    You are certainly given the formula for Altman’s Z score (or at least that happened in the past).

    I’m sure you would not be expected to know all the scores in Argenti, but you should know some of the high scoring items for each section so that you could discuss a case.

    June 3, 2014 at 11:51 am #173208
    atab
    Member
    • Topics: 82
    • Replies: 184
    • ☆☆☆

    Ok great thanks for your help 🙂

    June 4, 2014 at 2:31 pm #173753
    atab
    Member
    • Topics: 82
    • Replies: 184
    • ☆☆☆

    Another quick question with respect to this please…

    In the formula of Altman’s Z Score, are we also told what each component of the formula stands for (so X1 = working capital / total assets, X2 = retained earnings / total assets, and so on..)?

    June 4, 2014 at 3:42 pm #173775
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10650
    • ☆☆☆☆☆

    Yes, you would be told this I’m sure.

    June 4, 2014 at 4:17 pm #173790
    atab
    Member
    • Topics: 82
    • Replies: 184
    • ☆☆☆

    Ok thank you 🙂

    February 27, 2016 at 6:53 pm #302343
    llmaqe
    Participant
    • Topics: 6
    • Replies: 58
    • ☆☆

    Dear Tutor,

    In the detailed syllabus, specific mention is made of the Z-score and the A-score. However, several approaches are detailed in the Corporate Failure article. Can I take it that only the Z-score and the A-score are examinable?

    February 28, 2016 at 7:28 pm #302491
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10650
    • ☆☆☆☆☆

    They are the only ones that can be required because they are the only ones specified in the syllabus.

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